Israel's foreign exchange reserves dropped by $4.6 billion in September
The Bank of Israel announced that foreign exchange reserves fell by $4.6 billion in September, totaling $237 billion, or 34.2% of GDP. The main decrease came from a revaluation of reserves amounting to $4.4 billion,…
Assessment
Israel's foreign exchange reserves dropped by 4.6 billion dollars in September, landing at 237 billion dollars, or 34.2 percent of GDP. The decline is mostly technical, driven by currency revaluation of 4.4 billion dollars rather than active intervention. Government operations in the foreign exchange market accounted for 272 million dollars of the decrease. Watch whether this trend continues in coming months, since reserve levels as a share of output matter for Israel's creditworthiness and its ability to defend the shekel during shocks.